London: 28th October 2005 â Misys Banking Systems, an international company headquartered in the UK, and IBS, one of the largest players in Russiaâs IT and consulting market, today announced the signing of a Strategic Relationship Agreement. Misys is delighted to add IBS to their portfolio of strategic alliances.
Under the agreement, the companies will combine their efforts and resources to promote Misys Equation, a core banking system developed by Misys, in Russiaâs banking market. Misys Equation is a comprehensive, integrated, multi-currency, multi-lingual retail banking system that supports all areas and delivery channels of a bankâs operation from a single automation platform.
The agreement opens up new opportunities for Russian banks by giving them access to a powerful resource pool for implementing comprehensive IT projects. "We are not just widening our product implementation team, we are combining Misysâ unrivalled experience in developing advanced solutions and our knowledge of best practices in re-engineering corporate processes in financial institutions together with the industry expertise of IBS and its strong experience in implementing and managing complex projects," said Guy Harris, Sales Director, member of the Board of Misys Retail Banking.
The decision to set up this relationship between the two companies was taken in response to domestic banksâ increased demand for specialised IT solutions. With the increase in competition, the growth in the retail banking sector and the increasing M&A activity in Russia, - domestic market players need powerful data processing systems capable of supporting the bankâs long-term, sustainable growth and contributing to maintaining its competitive edge, for example, by enhancing customer experience. When Russia joins the WTO in the near future, Russian banks will need to comply with international business standards, a standard that is not always met by existing information systems.
According to IDC, the banking market is the most attractive place for IT investment. Banks invested USD 960.8 million in 2004 in Information technology. The forecast is an annual rise of at least 21% in general, 32.9% for IT consulting, and 26.1% for core banking products.
Sergey Matostsky, IBS General Director, said, "We are well established in the banking market. Indeed, we started IBS 13 years ago with the implementation of projects for two branches of the Savings Bank of Russia, and the systems we developed have supported the successful operation of those branches for many years! Today, we have unique industry expertise in delivering a broad range of comprehensive solutions to banks. It is a logical step to add a core banking system to our banking solutions portfolio. We already have the resources and skills required for implementing successful comprehensive solutions based on this product."
The partners plan to work primarily with large and middle-sized fast growing banks, the main existing and potential users of full-functionality, comprehensive IT solutions.
Misys Equation can provide a wide range of todayâs competitive advantages to Russian banks, including:
. Centralised processing â Equation allows branch operation based on a single automation platform
. Comprehensive solution â Equation supports virtually all business processes of a bank, including IAS reporting standards
. Scalability â Equation is capable of processing large data volumes (it has been benchmarked to 30 million customers, 36 million accounts and several million transactions per day)
. Flexibility â With Equation, users can introduce new products quickly, across all channels and ahead of the competition
. Customer focus â Equation enables an individualised customer approach thanks to the ability to evaluate customer value and product profitability
Localised support â Equation is able to provide comprehensive localisation solutions to Russian banks
. International best practices â With built-in best practices, Equation allows cost-effective re-engineering of corporate processes in the implementation phase
"We know that 30% of project success is attributable to the product, and the remaining 70% is due to its implementation. Misys has an impeccable reputation and excellent products. Every solution Misys has sold and implemented in Russia is highly valued by its users. Through our 13 years of operation in Russia and CIS, Misys has implemented more systems than all other western vendors together in these regions. The pricing model we apply allows our customers a rapid return on investment." noted Alexey Zagorenko, Country Manager, CIS, Misys Retail Banking.
Alexei Gurevich, Director of the IBS Banking Department, said, "Itâs no secret that implementing core banking systems requires deep specialised knowledge. We are strengthening our team with experienced experts in banking to ensure our customers get the most out of the new products.
We have carried out a large number of successful projects for many financial organisations including the Central Bank of the Russian Federation, Uralsib, Gazprombank, Guta Bank, Raiffeisen Bank. For 2006, we are setting up a resource to implement and support 2-3 projects based on Misys products."